Chapter 8, Problem 20AA

To determine

To ascertain the main reason of entrepreneurs that are capable to ahead huge financial risks to start new business.

Explanation of Solution

Risk allows us to differentiate between leaders and people. Businessmen are motivated by the value of success and maintain their own aims. Owning a company doesn't give them any income constraints, so they'll win bonuses. Effective entrepreneurship entails risk taking. Countless businessmen risked bringing their companies to where they are now. Nevertheless, taking risks doesn't mean going blindly into business and then actually expecting good results, entrepreneurs are taking risks as it allows them to differentiate themselves from their rivals. Those who are willing to gamble are pioneers in today's competitive business environment, while others are left behind.

Economics Concept Introduction

Introduction: Benefit is an important incentive for entrepreneurs to take on the risks of failing businesses. Entrepreneurs are individuals willing to take chances when making new goods and setting up new companies.